'Stock to de-rate': 2 'attractive' ASX 200 shares to buy right now

These two stocks are ready to bust out in 2024, so Baker Young's Toby Grimm recommends you pick them up before Christmas.

| More on:
Two happy shoppers finding bargains amongst clothes on a store rack

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After a choppy year, the S&P/ASX 200 Index (ASX: XJO) currently has some bargains begging to be picked up before a boom 2024.

Baker Young managed portfolio analyst Toby Grimm named two such ideas this week:

'Shares are attractive at recent levels'

For some reason Treasury Wine Estates Ltd (ASX: TWE) has failed to impress the market in 2023, despite best efforts.

The stock price is now down more than 22% over the past year.

"The premium wine maker has been sold off after announcing a US$900 million acquisition of Daou Vineyards and subsequent equity raising on October 31. Daou is a luxury wine brand based in California," Young told The Bull.

For the last 18 months, investors have been anticipating a massive catalyst for Treasury Estates.

Back in 2020, the company lost a huge export market when China imposed tariffs on Australian wine as retaliation for calls for an enquiry into the origin of COVID-19.

After a change of government in Canberra, there was hope that diplomatic relations between Australia and its largest trading partner might warm.

Young feels like picking up Treasury Wine shares right now could be wise with that punitive measure still in place.

"We believe the shares are attractive at recent levels, particularly if China reduces tariffs on imported Australian wine."

The ASX 200 stock ready to soar to 'intrinsic valuation'

The ASX Ltd (ASX: ASX) itself is an ASX 200 stock, but it hasn't been talked about much among investors due to its troubles upgrading technology.

Young reckons some recent decisiveness could provide a boost to the share price, which has tumbled more than 12.5% since April.

"Following several years and an investment of hundreds of millions of dollars in unsuccessful blockchain settlement technology, the ASX has finally abandoned the costly strategy in favour of a revamped CHESS system.

"This decision, while still requiring increased capital expenditure, reduces near-term uncertainty."

The ASX Ltd share price is hovering in the low $60s at the moment, but Young's team thinks it can move up to its "intrinsic valuation" of $72.50. 

Young's peers aren't quite as convinced, with only three out of 10 analysts currently surveyed on CMC Invest rating ASX Ltd shares as a buy.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cheap Shares

A young woman sits on her bed holding a cup of coffee inside her recreational vehicle hired through the Camplify website
Cheap Shares

2 cheap ASX shares to add to your portfolio before they get expensive

I reckon this duo could see their stock prices rocket after they brush off temporary setbacks.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Cheap Shares

This overlooked ASX 200 share is up 160% in a year but still dirt cheap! Should I buy it?

This tech stock is going absolutely gangbusters but many experts with long memories still consider it great value.

Read more »

A woman with black afro hair and wearing a white t-shirt shrugs and purses her lips
Cheap Shares

Are these top ASX shares dirt cheap and must-buys right now?

Is the market undervaluing these and giving you a buying opportunity?

Read more »

Couple looking at their phone surprised, symbolising a bargain buy.
Cheap Shares

2 ASX 200 shares trading at a 'deep discount to their deserved valuation'

This fund manager spies a bargain with these two stocks.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Cheap Shares

2 cheap and 'attractive' ASX shares to buy now that you've not thought of

Glenmore Asset Management's Robert Gregory is backing these 'meta' stocks for the long run.

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Cheap Shares

3 ASX shares I think you'll be glad you bought at these prices

Here is a trio of stocks that have businesses with long and windy growth prospects. Make sure you pick them…

Read more »

Two strong women battle it out in the boxing ring.
Cheap Shares

2 'oversold' ASX shares to get onto right now at 'attractive entry levels'

If the problem is temporary, it's the perfect opportunity for long-term investors to pick up a bargain.

Read more »

A group of six young people doing the limbo on a beach, indicating oversold shares that can not go any lower.
Cheap Shares

6 oversold ASX shares to buy in February 2024

Why the price could now be right on these beaten-up ASX stocks.

Read more »